IBM: Credit Suisse raises target price
(CercleFinance.com) - On Tuesday Credit Suisse raised its target price for IBM shares from 167 to 176 dollars, maintaining its "outperform" rating on them.
This increase comes as the technology giant yesterday presented investors with its strategy in the hybrid "cloud" as well as its financial targets in view of the split - expected by the end of the year - of its infrastructure and computer science businesses.
After the operation, the software division is set to generate growth of around 5%, while the consulting division should grow at between 5% and 10%, the broker says.
Credit Suisse believed that the opportunity IBM has in an environment where the hybrid cloud is destined to prevail is significantly underestimated and undervalued at current price levels.
Investors didn't seem to listen though - the share closed down 0.7% yesterday.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
This increase comes as the technology giant yesterday presented investors with its strategy in the hybrid "cloud" as well as its financial targets in view of the split - expected by the end of the year - of its infrastructure and computer science businesses.
After the operation, the software division is set to generate growth of around 5%, while the consulting division should grow at between 5% and 10%, the broker says.
Credit Suisse believed that the opportunity IBM has in an environment where the hybrid cloud is destined to prevail is significantly underestimated and undervalued at current price levels.
Investors didn't seem to listen though - the share closed down 0.7% yesterday.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.